Alibaba Intends To Spend $53bn On Developing AI

The Chinese tech giant Alibaba Group has pledged to invest more than 380 billion yuan ($53 billion) on Artificial Intelligence (AI) infrastructure such as data centres over the next three years. 

This is China’s biggest known AI infrastructure investment and demonstrates Alibaba’s commitment to becoming a worldwide leader in AI. 

Alibaba plans to spend more on its AI and cloud computing network than it has over the entire past decade and intends to become a key partner to companies developing and applying AI to the real world. However, AI is a highly competitive field, consuming huge amounts of money and requiring heavy investment in infrastructure to supply increasing amounts of computing power.

For comparison, Microsoft will invest $80billion in the US this year, while OpenAI is part of a consortium, Stargate, which has pledged to invest an unprecedented $500billion in AI development. 

Indeed, many institutional investors are wondering whether big tech firms are overestimating future demand for AI services, or the capital needed to create them. Some of them have begun to question whether such investment is running ahead of reality, particularly after the Chinese startup DeepSeek unveiled a model trained for a fraction of the cost of many of its rivals.

Nevertheless, leading technology industry figures, notably including the CEO of the semiconductor manufacturer, Nvidia’s Jensen Huang, continue to argue that AI will prove to be transformative.  

Right now, investors are busy buying Chinese technology stocks, with Alibaba, which operates some of the country’s biggest online shopping platforms, seeing its shares climbing to a three-year peak

 Bloomberg   |     Yahoo    |   Business Insider     |   Tipranks     |    NZ Herald     |   SAMAA

Image: @AlibabaGroup

You Might Also Read: 

Grok 3  - The  Latest AI Reasoning Model:

If you like this website and use the comprehensive 7,000-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

• Individual £5 per month or £50 per year. Sign Up

• Multi-User, Corporate & Library Accounts Available on Request

• Inquiries: Contact Cyber Security Intelligence     

Cyber Security Intelligence: Captured Organised & Accessible